Mark Walker of MRM UK shares how travel companies can boost the chances of a client becoming a repeat customer
As summer approaches, the bustling travel industry is gearing up for another surge in bookings. Everyone from booking platforms to airlines will clamour to win customers and take a slice of their hard-earned holiday budget.
But attracting new customers can’t be the only priority in a market flooded with options. The key to success lies in securing their loyalty.
Loyalty is a very different proposition in travel than in other industries. It’s not about chasing a repeat purchase; travel isn’t a quick transaction where brands can win on price or the promise of a discount. Brits in full-time employment are promised just 28 days holiday per year, and families with school-age children have only six weeks between July and September to play with. That time and what we do with it is critically important to us.
So, travel is a deeply personal and drawn-out purchase, something people look forward to months in advance. To create loyalty, brands must craft a memorable experience from beginning to end, engaging travellers from that first moment of holiday inspiration until their plane touches down after a successful trip. They need to help customers have the holiday of their dreams.
Knowing that, what can brands do to ensure they provide an experience that keeps customers coming back year after year? The answer is to understand people as individuals and personalise that experience according to their preferences and needs. Leveraging customer relationship management (CRM) tools is crucial to doing this effectively and can help brands see into the future of their customers today.
Personas and segmentation
Segmenting customers into distinct personas is a clear place to start. Are your customers adventurers, luxury seekers, or family travellers? Once brands understand these different groups, they can tailor their offerings and communications to best resonate with each. If they’re a nature-lover, for example, recommend a trip to Yellowstone National Park. If they’re into attractions and theatrical shows, recommend Las Vegas.
Many travel brands already have deep persona and segmentation models, but they are often heavily based on volunteered data. The challenge with that is people are rarely honest about who they really are, so it’s imperative that brands gather calculated and observed data, too.
Understanding psychographic behaviours can also help brands get a firm grip on their consumers’ needs and wants. What are those built-in qualities and preferences a person has that dictate where they want to go and what they want to spend their money on? Is it important for them to travel to secret gem destinations, or do they like the comfort of visiting places they have been to before? Get to know your consumers inside out so you can tailor an experience that fits them perfectly.
Mapping the customer experience
Once a brand understands its consumers, it needs to map out its relationship with them and how it can nudge them through the customer lifecycle, from exploration to evaluation and purchase.
The travel industry has always been good at capturing people’s imaginations and nurturing desire, but it often falls down later in the consumer lifecycle. Brands don’t always take notice of the behavioural signals they could use to foster long-term engagement.
Other industries have this cracked. Netflix, for example, knows when you finish a binge-able series and immediately sends new recommendations. It’s always hunting for that next activation point to get you hooked back on its platform.
Travel brands likewise need to understand where their customers have been, what they’ve done, and what their next action should be. They need to know where people are in their journey and the nudge points required to move them along.
Once this year’s holiday is over, they need to give customers a reason to return next year by continuing the conversation and gathering data. Could you remind a customer that it has been a year since they were on holiday in Amsterdam, for example? Messages like these can provoke action, though it’s important not to cross the line. People want to feel understood, but they don’t want to feel tracked.
It would be naïve to suggest consumers never buy holidays based mainly on price, especially amid the ongoing cost-of-living crisis. However, loyalty and desire remain powerful emotional triggers. People always want the best experience possible from their holidays, so they’ll return to those they trust to serve them best.
Think about it—where are you going to go to book your holiday to Greece this summer or your long weekend in the Lake District? Are you going to go back to that website that recommended hotels and activities that were totally wrong for you? Or are you going back to the one that understood your needs and wants and helped you craft the perfect holiday? When customers find an experience they deem positive, they go back.
So beyond mere transactions, fostering long-term relationships requires consistent engagement, anticipation, and meeting customers’ evolving desires. By prioritising personalisation, proactive support, and meaningful interactions, travel businesses can build loyalty that will last long after the summer ends.